How Mortgages loan tx work and plan for the future!

All loans follow this procedure for each type of loan. An important step in the course of loan processing works as credit review and employment verification. Which are achieve once an application is completed. Supporting documents such as tax returns, pay stubs, bank statements, or investment records are often required to complete this step. The mortgage loan application form asks for detailed information about you and the property, you wish to buy and requires documentation about your personal finances. The lender will audit this information as well as your credit history. Then your mortgage loan process is ready to move to the pipeline.

And the way, we will need to collect several documents from you to provide to the underwriters. Additionally, the underwriters can ask for additional documents during underwriting.

Let’s Simplify the Home Mortgage Lending Process

Application


The application form used on the website provides the quick essentials of your mortgage application so that we can pull your credit and start the loan process. This complete mortgage loan application asks for detailed information about you and the property you wish to buy and requires documentation about your personal finances.

During the application process, you will be assigned a loan officer to generate your loan and assist you. Your loan officer then compiles your application documents, selects the appropriate documents for the loan program you have requested, and prepares your loan package for processing. The file will then be sent to the processor. The Processor will verify many of the items, such as income, employment, and assets before sending them to the Underwriter. This requires phone verification and receipt of documents from your employer. Depending on market conditions and the cooperation of all parties that we make requests to, such as your employer, a pre-approval can normally be issued within 24 – 48 hours. Then all documentation has been verified, and most of the time we can get you approved the same day.

Processing


We have compiled your application and required documents. Now select the appropriate documentation for the loan program you have requested and prepare your loan package for processing. Then the Processor will take over much of the work on your file.

The Processor will verify many of the items. He will take some of your documents (such as your income, employment, and assets) before sending them to the underwriter. This requires verification of your phone and receipt of documentation from your employer. When applicable, a payoff will be ordered from the current mortgage holders and a title search will be run to make sure all liens have been verified. Once this information has been verified, your file will be sent to the underwriter for approval.

Documents needed at application:

  • Most Current Pay Stub (30 Days)
  • Two Months of Current Bank Statements
  • Copy of Driver’s License
  • Two Years Recent Tax Returns (All Pages)
  • Most Recent Quarterly Statement for Retirement/Investment Funds

Appraisal


The appraiser’s job is to determine the fair market value of the home you are buying and to determine the current value of your current home if you refinance. Assessors in Texas do this by verifying the properties of the house and land. This will be done through any personal investigation to verify the condition of the property, square, house count, used construction materials, and acres of land. The appraiser will contact you for pricing if re-financed, or contact the seller if it is purchased. The cost of valuation for a single-family home is usually fairly standard in Texas, but if the property is not rural, not difficult to access, or is of unusual size or planting, the amount provided must be paid in advance, because the appraiser is a third-party contractor and not part of our organization.

Underwriting


An underwriter is responsible for approving your home loan. Prior to submission to the Underwriter, we have already received conditional approval from our automated underwriting system. The “live person” must verify and qualify the underwriter’s income, credit, cash savings, and assets himself. If everything meets the guidelines stated for the program, a conditional approval will be granted. Which will create a list of items needed to fund the lender to close the loan. In the home loan process, the underwriter has all the documentation that creates a strong financial picture. Because the work of an underwriter is limited to each loan they authorize. If the Underwriter requests additional information, it is compulsory that we provide it immediately.

Lock Your Rate


The appraiser’s job is to determine the fair market value of the home you are buying and to determine the current value of your current home if you refinance. Assessors in Texas do this by verifying the properties of the house and land. This will be done through any personal investigation to verify the condition of the property, square, house count, used construction materials, and acres of land. The appraiser will contact you for pricing if re-financed, or contact the seller if it is purchased. The cost of valuation for a single-family home is usually fairly standard in Texas, but if the property is not rural, not difficult to access, or is of unusual size or planting, the amount provided must be paid in advance, because the appraiser is a third-party contractor and not part of our organization.

Closing


Mortgage processing has a variety of costs related to processing and closing. For example application fees, points, title, insurance, and credit processing. The closing agent, will prepare closing documents and send the loan package to the closing company, and wires loan funds to the closing agent. When budgeting for your new home purchase be sure to factor in closing costs (this cost will be provided to you in our free estimate).

Documents will be sent to a title company for you and the seller to sign. Any costs of down payment and foreclosure will be at this time. Mortgage closing costs normally include such items as appraisal fees, title exams, settlement fees, title insurance, credit report fees, and application fees.

Summary: There you have it, the six distinct phases of the mortgage loan process! Hopefully, you are feeling confident and comfortable about every step. Now when you move into your new home, be sure to change your address with the post office and other key entities like your bank, government agencies, and service providers.